Ludwig von Mises argues that monopolies are the direct result of government intervention and not the product of any inherent tendency within the capitalist system (1949)

Ludwig von Mises

The great Austrian economist Ludwig von Mises argued that monopolies were the result of government intervention not that of the free market:

As has been pointed out already, there is no such tendency toward monopolization. It is a fact that with many commodities in many countries monopoly prices prevail, and moreover, some articles are sold at monopoly prices on the world market. However, almost all of these instances of monopoly prices are the outgrowth of government interference with business. They were not created by the interplay of the factors operating on a free market. They are not products of capitalism, but precisely of the endeavors to counteract the forces determining the height of the market prices. It is a distortion of fact to speak of monopoly capitalism. It would be more appropriate to speak of monopoly interventionism or of monopoly statism.

Here is another quotation from Liberty Fund’s new “Library of the Works of Ludwig von Mises”. Mises debunks the idea that monopolies are an inherent feature of free market capitalist economies. They are instead the direct result of government intervention in economic matters, usually to provide benefits to a favored group or to counter previous failed government policies.